EX-99.1 2 tm2427920d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

AMCON DISTRIBUTING COMPANY REPORTS RESULTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024

 

NEWS RELEASE

 

Omaha, NE, November 8, 2024 - AMCON Distributing Company (“AMCON” or “the Company”) (NYSE American: DIT), an Omaha, Nebraska based Convenience and Foodservice Distributor, is pleased to announce fully diluted earnings per share of $7.15 on net income available to common shareholders of $4.3 million for the fiscal year ended September 30, 2024.

 

“We have seen our strategic plan come to full bloom in fiscal 2024. AMCON has grown its footprint geographically, expanded within our existing footprint, and enhanced our foodservice capability. We are now the third largest Convenience Distributor in the United States measured by territory covered. Our new Springfield, Missouri facility is fully operational and provides the infrastructure necessary to advance our foodservice initiatives. AMCON’s long-standing core operating philosophy is providing a superior level of customer service. Our customer-centric approach has guided us through these challenging times and ensured that AMCON’s customers received a consistent and timely flow of goods and services,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We continue to actively seek strategic acquisition opportunities for operators who want to align with our customer focused approach philosophy and further the legacy of their enterprises.”

 

The wholesale distribution segment reported revenues of $2.7 billion and operating income of $31.3 million for fiscal 2024 and the retail health food segment reported revenues of $42.5 million and operating income of $0.1 million for fiscal 2024.

 

“We continue to drive the growth of our foodservice business through our Henry’s Foods (“Henry’s”) subsidiary. Henry’s offers a breadth and depth of proprietary foodservice programs and associated store level merchandising that is unparalleled in the convenience distribution industry. Through Henry’s, we now have the capability to offer turn-key solutions that will enable our customer base to compete head-on with the Quick Service Restaurant industry. We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas as we deploy these capabilities across our entire organization,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer. Mr. Plummer continued, “In particular, we now have integrated state of the art advertising, design, print and electronic display programs that we believe provide our customers a competitive edge.”

 

“We continue our relentless daily focus on managing the Company’s balance sheet and maximizing our liquidity position. At September 30, 2024, our shareholders’ equity was $111.7 million,” said Charles J. Schmaderer, AMCON’s Chief Financial Officer. Mr. Schmaderer also added, “We are investing capital to develop our recently acquired 250,000 square foot distribution facility in Colorado City, Colorado, which will support our customers’ growth initiatives in the Intermountain Region.”

 

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., is a leading Convenience and Foodservice Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with thirteen (13) distribution centers in Colorado, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fifteen (15) health and natural product retail stores in the Midwest and Florida.

 

 

 

 

This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company's forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs and the other factors described under Item 1.A. of the Company’s Annual Report on Form 10-K. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements.

 

Visit AMCON Distributing Company's web site at: www.amcon.com

 

For Further Information Contact:

Charles J. Schmaderer

AMCON Distributing Company 

Ph 402-331-3727

 

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AMCON Distributing Company and Subsidiaries

 

CONSOLIDATED BALANCE SHEETS

 

   September   September 
   2024   2023 
ASSETS          
Current assets:          
Cash  $672,788   $790,931 
Accounts receivable, less allowance for credit losses of $2.3 million at September 2024 and $2.4 million at September 2023   70,653,907    70,878,420 
Inventories, net   144,254,843    158,582,816 
Income taxes receivable   718,645    1,854,484 
Prepaid expenses and other current assets   12,765,088    13,564,056 
Total current assets   229,065,271    245,670,707 
           
Property and equipment, net   106,049,061    80,607,451 
Operating lease right-of-use assets, net   25,514,731    23,173,287 
Goodwill   5,778,325    5,778,325 
Other intangible assets, net   4,747,234    5,284,935 
Other assets   2,952,688    2,914,495 
Total assets  $374,107,310   $363,429,200 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $54,498,225   $43,099,326 
Accrued expenses   15,802,727    14,922,279 
Accrued wages, salaries and bonuses   8,989,355    8,886,529 
Current operating lease liabilities   7,036,751    6,063,048 
Current maturities of long-term debt   5,202,443    1,955,065 
Current mandatorily redeemable non-controlling interest   1,703,604    1,703,604 
Total current liabilities   93,233,105    76,629,851 
           
Credit facilities   121,272,004    140,437,989 
Deferred income tax liability, net   4,374,316    4,917,960 
Long-term operating lease liabilities   18,770,001    17,408,758 
Long-term debt, less current maturities   16,562,908    11,675,439 
Mandatorily redeemable non-controlling interest, less current portion   6,507,896    7,787,227 
Other long-term liabilities   1,657,295    402,882 
           
Shareholders’ equity:          
Preferred stock, $.01 par value, 1,000,000 shares authorized   —    — 
Common stock, $.01 par value, 3,000,000 shares authorized, 630,362 shares outstanding at September 2024 and 608,689 shares outstanding at September 2023   9,648    9,431 
Additional paid-in capital   34,439,735    30,585,388 
Retained earnings   108,552,565    104,846,438 
Treasury stock at cost   (31,272,163)   (31,272,163)
Total shareholders’ equity   111,729,785    104,169,094 
Total liabilities and shareholders’ equity  $374,107,310   $363,429,200 

 

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AMCON Distributing Company and Subsidiaries

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

   Fiscal Years Ended September 
   2024   2023 
Sales (including excise taxes of $569.5 million and $564.6 million, respectively)  $2,710,981,108   $2,539,994,999 
Cost of sales   2,528,626,652    2,369,150,102 
Gross profit   182,354,456    170,844,897 
Selling, general and administrative expenses   154,878,763    137,301,668 
Depreciation and amortization   9,495,179    7,576,646 
    164,373,942    144,878,314 
Operating income   17,980,514    25,966,583 
           
Other expense (income):          
Interest expense   10,413,228    8,550,431 
Change in fair value of mandatorily redeemable non-controlling interest   1,040,968    1,307,599 
Other (income), net   (936,171)   (1,193,840)
    10,518,025    8,664,190 
Income from operations before income taxes   7,462,489    17,302,393 
Income tax expense   3,126,000    5,706,000 
Net income available to common shareholders  $4,336,489   $11,596,393 
           
Basic earnings per share available to common shareholders  $7.24   $19.85 
Diluted earnings per share available to common shareholders  $7.15   $19.46 
           
Basic weighted average shares outstanding   599,020    584,148 
Diluted weighted average shares outstanding   606,782    595,850 
           
Dividends paid per common share  $1.00   $5.72 

 

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AMCON Distributing Company and Subsidiaries

 

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

 

               Additional       
   Common Stock  Treasury Stock  Paid-in  Retained    
   Shares  Amount  Shares  Amount  Capital  Earnings  Total 
Balance, October 1, 2022  917,009  $9,168   (332,220) $(30,867,287) $26,903,201  $96,784,353  $92,829,435 
Dividends on common stock, $5.72 per share  —   —   —   —   —   (3,534,308)  (3,534,308)
Compensation expense and issuance of stock in connection with equity-based awards  26,263   263   —   —   3,682,187   —   3,682,450 
Repurchase of common stock  —   —   (2,363)  (404,876)  —   —   (404,876)
Net income available to common shareholders  —   —   —   —   —   11,596,393   11,596,393 
Balance, September 30, 2023  943,272  $9,431   (334,583) $(31,272,163) $30,585,388  $104,846,438  $104,169,094 
Dividends on common stock, $1.00 per share  —   —   —   —   —   (630,362)  (630,362)
Compensation expense and issuance of stock in connection with equity-based awards  21,673   217   —   —   3,854,347   —   3,854,564 
Net income available to common shareholders  —   —   —   —   —   4,336,489   4,336,489 
Balance, September 30, 2024  964,945  $9,648   (334,583) $(31,272,163) $34,439,735  $108,552,565  $111,729,785 

 

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AMCON Distributing Company and Subsidiaries

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   September   September 
   2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income available to common shareholders  $4,336,489   $11,596,393 
Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:          
Depreciation   8,957,478    7,161,468 
Amortization   537,701    415,178 
(Gain) loss on sales of property and equipment   (177,467)   (133,659)
Equity-based compensation   2,489,781    2,717,370 
Deferred income taxes   (543,644)   2,589,372 
Provision for credit losses   (64,705)   (133,924)
Inventory allowance   62,349    (138,820)
Change in fair value of contingent consideration   (124,992)   — 
Change in fair value of mandatorily redeemable non-controlling interest   1,040,968    1,307,599 
Changes in assets and liabilities, net of effects of business combinations:          
Accounts receivable   5,900,380    (138,956)
Inventories   29,003,285    (7,728,394)
Prepaid and other current assets   2,227,044    (679,229)
Other assets   (38,193)   (163,340)
Accounts payable   11,397,485    2,213,085 
Accrued expenses and accrued wages, salaries and bonuses   1,221,322    1,574,050 
Other long-term liabilities   511,231    298,914 
Income taxes payable and receivable   1,135,839    (1,034,889)
Net cash flows from (used in) operating activities   67,872,351    19,722,218 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of property and equipment   (20,429,805)   (11,561,347)
Proceeds from sales of property and equipment   416,546    151,808 
Acquisition of Burklund   (15,464,397)   — 
Acquisition of Richmond Master   (6,631,039)   — 
Acquisition of Henry's   —    (54,865,303)
Net cash flows from (used in) investing activities   (42,108,695)   (66,274,842)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Borrowings under revolving credit facilities   2,517,192,464    2,512,309,723 
Repayments under revolving credit facilities   (2,536,358,449)   (2,463,134,172)
Proceeds from borrowings on long-term debt   —    7,000,000 
Principal payments on long-term debt   (3,765,153)   (2,349,065)
Repurchase of common stock   —    (404,876)
Dividends on common stock   (630,362)   (3,534,308)
Redemption and distributions to non-controlling interest   (2,320,299)   (2,975,323)
Net cash flows from (used in) financing activities   (25,881,799)   46,911,979 
Net change in cash   (118,143)   359,355 
Cash, beginning of period   790,931    431,576 
Cash, end of period  $672,788   $790,931 
           
Supplemental disclosure of cash flow information:          
Cash paid during the period for interest, net of amounts capitalized  $9,985,313   $8,311,375 
Cash paid during the period for income taxes, net of refunds   2,520,127    4,141,370 
           
Supplemental disclosure of non-cash information:          
Equipment acquisitions classified in accounts payable  $1,016,948   $1,015,534 
Purchase of property financed with promissory note   8,000,000    — 
Portion of Burklund acquisition financed with promissory note   3,900,000    — 
Portion of Burklund acquisition financed with contingent consideration   1,578,444    — 
  Issuance of common stock in connection with the vesting of equity-based awards   1,296,372    2,044,805 

 

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